Indian government approves tax exemption

The Indian government has decided to amend an income-tax regulation so as to allow the BCCI to host the Champions Trophy tournament as scheduled next year. The ICC had demanded tax exemption as a condition for hosting the tournament, and the last Champions Trophy had been shifted from India to England after the then-government refused to budge on the issue. There was a danger this time that the tournament would be shifted to Pakistan, who had expressed their willingness to host it. But the matter is now resolved.

"The cabinet has approved amending the law so that India is not deprived of the tournament," said P Chidambaram, India's finance minister, after a cabinet meeting. According to AFP, he added that tax exemptions would be granted in future to other sporting events "provided it was a truly multinational event approved by an international body responsible for regulating the relevant sport."

The last big ICC event that India hosted was the 1996 World Cup. It is bidding to host the 2011 World Cup, and the Champions Trophy will be a welcome money-spinner in between.